pm introduction chapter 1
TRANSCRIPT
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Introduction to Projects and
Project management
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What Is a Project?
A project is a temporary endeavor undertaken
to create a unique product, service, or result.
Operations is work done to sustain the business.
A project ends when its objectives have been
reached, or the project has been terminated.
Projects can be large or small and take a short
or long time to complete.
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What Is a Project?
A temporary endeavor undertaken to create
a unique product or service.*
*2000 PMBOK Guide (p. 4).
Term Mean s th a t a Pro j ect
tempo rary Has a beg i nn i ng and end
endeavo r Invo l ves e ffo rt, work
to create Has an i ntenti on to p roduce someth i ng
(proj ect "del iverab les"
u ni q ue On e o f a k in d , ra th er th an a co ll ecti on of
identical i tem s
p ro duct Tang i b l e o b jects, bu t co u ld i n cl u de th i ngs l ik e
com pu ter software, f i lm or stag e works
servi ce M igh t i n cl u de th e e sta b li shmen t o f a day-ca re
center, for in stance, b ut not its dai ly
operat ions.
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Project Stakeholders
Stakeholders are the people involved in oraffected by project activities.
Stakeholders include: Project sponsor Project manager Project team Support staff Customers
Users Suppliers Opponents to the project
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History of Project Management
Some people argue that building the Egyptianpyramids was a project, as was building theGreatWall of China.
Most people consider the Manhattan Project tobe the first project to use modern projectmanagement.
This three-year, $2 billion (in 1946 dollars) project hada separate project and technical managers.
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Advantages of Using Formal
Project Management
Better control of financial, physical, and humanresources.
Improved customer relations.
Shorter development times. Lower costs. Higher quality and increased reliability. Higher profit margins.
Improved productivity. Better internal coordination. Higher worker morale (less stress).
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Project Success Factors
1. Executive support
2. User involvement
3. Experienced project manager
4. Clear business objectives
5. Minimized scope
6. Standard software
infrastructure
7. Firm basic requirements
8. Formal methodology
9. Reliable estimates
10. Other criteria, such as small
milestones, proper planning,
competent staff, and
ownership
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Project Management Knowledge
Areas
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Nine Project Management Knowledge
Areas
1. Integration Management
2. Scope Management
3. Time Management
4. Cost Management
5. Quality Management
6. Human Resource Management
7. Communications Management8. Risk Management
9. Procurement Management
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#1Project Integration Management
Bringing it All Together:
Building the Project Plan
Project Execution Integrated Change Control
Project Management Nerve Center
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#2Project Scope Management
Staying Vigilant in Defining and Containing
Scope throughout the Project
Project Initiation
Scope Planning
Scope Definition
Scope Verification
Scope Change Control
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#3Project Time Management
DeterminingWhat Gets Done and When
through:
Activity Definition
Activity Sequencing
Activity Duration Estimating
Schedule Development
Schedule Control
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#4Project Cost Management
Planning for Resources
Estimating Costs
Creating the Budget Managing/Controlling
the Budgets
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#5Project Quality Management
Quality Planning
Quality Assurance
Quality Control
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#6Project Human Resource
Management
Organizational Planning
Staff Acquisition
Team Development
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#7Project Communications
Management
Keeping Stakeholders Informed
(and Involved!)
Communications Planning
Dissemination of Information
Progress Reporting
Administrative Closure
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#8Project Risk Management
Expect the Unexpected!
Risk Management Planning
Risk Identification Qualitative Risk Analysis
Quantitative Risk Analysis
Risk Response Planning
Risk Management and Control
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#9Project Procurement
Management
For Projects Using Outside Resources:
Procurement Planning
Solicitation Planning Solicitation
Source Selection
Contract Administration
Contract Closeout
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Characteristics of Project
Objective
Life cycle
Conception
Design
Implementation
commissioning
Defined time limit
Uniqueness
Team work
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Rational choice
Principle of succession
Optimality Control mechanism
Multi-disciplinary
Conflicts Part of large programme
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The Role of the Project Manager
Job descriptions vary, but most include
responsibilities such as planning, scheduling,
coordinating, and working with people to
achieve project goals.
Remember that 97 percent of successful
projects were led by experienced projectmanagers.
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Define scope of project.
Identify stakeholders, decision-
makers, and escalation
procedures.
Develop detailed task list (work
breakdown structures).
Estimate time requirements.
Develop initial project
management flow chart.
Identify required resources and
budget.
Evaluate project requirements.
Identify and evaluate risks.
Prepare contingency plan.
Identify interdependencies.
Identify and track critical milestones. Participate in project phase review.
Secure needed resources.
Manage the change control process.
Report project status.
Fifteen Project Management Job
Functions
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Suggested Skills for Project Managers
Communication skills: Listens, persuades.
Organizational skills: Plans, sets goals, analyzes.
Team-building skills: Shows empathy, motivates, promotes espritde corps.
Leadership skills: Sets examples, provides vision (big picture),delegates, positive, energetic.
Coping skills: Flexible, creative, patient, persistent.
Technology skills: Experience, project knowledge.
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Most Significant Characteristics of Effective
and Ineffective Project Managers
Leadership by example
Visionary
Technically competent Decisive
Good communicator
Good motivator
Stands up to uppermanagement whennecessary
Supports team members
Encourages new ideas
Sets bad example
Not self-assured
Lacks technical expertise Poor communicator
Poor motivator
Effective Project Managers Ineffective Project Managers
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The Triple Constraint
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The Triple Constraint
OR, INPLAIN
ENGLISHFast Cheap
Good
Cost
Quality/Scope
Time
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Triple Constraint Trade-Offs
Cost
Quality/Scope
Cons t r a i n t
C h a n g e
Shorter Tim e Hig her Cost Reduced Qual i ty o r Narrowed
Scope
Reduced Cost More Tim e Reduced Qual i ty o r NarrowedScope
Hig her Qual ity or
Increased Scope
More Tim e Hig her Cost
Requ i r e d Ad j u s tm en t A l te r n a t i ve s (One o r
Com b i n a ti o n o f Bo t h )
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Triple Constraint: Setting Priorities
Co n str a i n t 1 2 3 M ea su rem en tTim e
Cost
Quality/Scope
Pr i o r i t y Ma t r i x
Must be set by customer and sponsor near startup.
May change over time, but a change is a significant event!
If these are the established priorities and measurements, what are
some of the implications for the project if the project starts running late
or shows signs of exceeding budget?
C o n s tr
i n t 1 2 3 M e a s u r e m e n t
Tim e XBu i l d in g m ust
e o m p leted
t ober 3 1 o f th is ea r to
accom m o d a te co rp o ra te m ove.
Cost X Costs fo r th ep rojectm ustn o texceed $2 2 . 5 m i l l io n .
Qu a l i ty/Scope XMustp ro vi d e o rkspace fo r 1 2 0 ca l l
center sta ff.
Ex am p l e o f a C o m p l e t e d Pr i o r i ty M a tr i x f o r a C o n s tr u ct i o n Pr o j e c t
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Project Selection
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Sacred Cows and Pressing Needs
Sacred Cow selectionSenior Management wants it!(it may often turn out well; many visionary projectsstart here)
Business opportunity (make more $$$)
Savings potential (save $$$) Keeping up with competition (example, many e-commerce projectswere in response to competitors initiatives)
Risk management (examples: disaster recovery initiatives, Y2K)
Government or regulatory requirements
URGENT!!!
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First Selection CriterionSanityCheck: Does the project fit in with the stated goals of the
organization?
Which of the following meet this criterion? Why or why not?
An environmental group proposes a project to raise money by sellingaerosol cans of a powerful new pesticide.
A video store chain proposes to develop a web site for ordering anddistributing videos.
A bank offers a free rifle to anyone opening a new savings account.
A restaurant equipment manufacturer decides to introduce a line ofhigh-end refrigerators for the consumer market.
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Selection ToolsN u m e r i c e th o d Descr i p ti o nPaybackPeriod Determ ineshow uicklyap ro ject
recoupsi tscosts
NetPresent Value Estim atesthecurrentworth o f
anticipated cash fl owsresult ing from
th ep ro ject
Unweighted election Scoresmult ip lep ro jectsaga instase t
o f selectioncriteria, with al l criteria
be ing equal
Weighted Selection Scoresmult ip lep ro jectsaga instase t
o f selectioncriteria, with each
criterion assigned anumer icwe igh t
PairwisePrio ri ties Rank order ing anumbe ro f candidate
p ro jectsbysystem atical lycompar ing onewith each o f theothers
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Classification of projects
Based on the type of activity Industrial
Non-industrial
Based on location of the project National
International project Fully owned, joint ventures, M&A
Based on the completion time Normal
Crash
Based on ownership Private sector
Public sector
Joint sector
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Based on size Small
Medium
Large
Based on need New projects
Balancing projects
Expansion projects
Modernization projects
Replacement projects Diversification projects
Backward integration
Forward integration
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The Project Life Cycle
Gener l r f r ject ife cle
Phase 1 Phase 2 Phase 3 Phase... Phase " "
Pr ject
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Project Life Cycles Are Like Snowflakes!
S im p le T h re e -P h a s e P r o je c t L i fe C y c le
In itia tio n E xe c u tio n C lo se -O u t
Pro jec t
Nine-Phase Project Life Cycle
Formulate Concept Evaluate Concept Verify Scope Design Construct Deploy Maintain Close
Project
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Our Project Life CycleProject Life Cycle Used in this Workshop
Initiation Definition Planning Implementation Closure
Project
Ph a e Pu r e
In
a
n In
r
uce r jec
a
a n a
r va an crea
e r jec
char
er
e f n
n cumen
r jec
c e , e vera e , an m e
h f r
c n
a n n c e .
Plann n Crea
e lan
cumen
n
he ac
v
e re u re
c m le
e
he r jec
, a lon
h e uence o f a c
v
e ,
re ource a ne
o
he ac
v
e , an re u l tin
che u le an u e ts.
Im le m e n tati on Ex ecu te an mana e the lan , usin arti facts create in
the lann in hase .
Closure Fo rm a l ly revie the ro ject, inclu in lesso nslearne an
turnove r o f ro ject ocumen tati on .
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Continuous Improvement
Initiation Definition Planning Implementation Closure
Project
LessonsLearned
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A Word About Tools
Many people assume that project
management is all about
management software.
Thats like saying that residential
construction is all about hammers!
Such tools will often make your worksimpler and handle complex
calculations with ease.
However, without a solid
understanding of PM concepts, the
tools often provide an illusion of
project control that does not exist.
Learn the concepts, then the tool.
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Project Assumptions
Almost every lesson includesthe reminder Dont Assume!!
Turn that around and make it
Document Assumptions! Dont expect others to read your mind.
Capture as many assumptions as possible to include in
your initial project charter.
D
ont be surprised if others do not share all yourassumptions. This is the time to resolve differences
before the project is underway!